REG - Hostmore PLC - AGM Trading Update

HostmoreAnnouncement

03/06/2024 07:00

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RNS Number : 7504Q  Hostmore PLC  03 June 2024

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This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

3 June 2024

Hostmore plc

AGM Trading Update

In conjunction with today's Annual General Meeting of shareholders, Hostmore
plc (together with its subsidiaries, the "Group") announces an update on
trading for the 20 weeks ended 19 May 2024.

Year-to-date LFL sales were 10% lower versus the same period for 2023.
However, EBITDA (FRS102) continues to perform ahead of 2023, with the first
four months to the end of April higher by £3.3 million versus the same period
for 2023.

The final two 63rd + 1st store locations are expected to be closed by 30 June
2024, with the brand's supply chain and support function expense having now
been removed, improving future EBITDA performance for the Group.

It is the Board's expectation that net debt will reach a peak for the year at
the end of Q3, a quarter later than typically experienced, due to lower
revenues and the payment of transaction fees as they fall due of approximately
£3 million related to the proposed all-share acquisition of TGI Fridays Inc.
announced on 16 April 2024 (the "Acquisition").  The Board's expectation for
net debt does not give effect to completion of the Acquisition, as the
existing net debt of the Group is expected to be repaid on or shortly after
completion of the Acquisition.

Update on the TGI Fridays Acquisition:

•           The refinancing process of the combined group has
received interest from numerous lenders and is currently under exclusivity
with one party to agree a package

•           The share purchase agreement formalising the
transaction is expected to be signed shortly after financing is agreed

•           The transaction remains on schedule to reach binding
terms and complete before the end of Q3 2024

 

The person responsible for releasing the announcement is Matthew Biddy, CFO of
Hostmore plc.

 

ENDS

Enquiries

Hostmore plc

Matthew Bibby, Chief Financial Officer

Tel: +44 (0)330 460 5588

Email: enquiries@hostmoregroup.com (mailto:enquiries@hostmoregroup.com)

 

Dentons Global Advisors

Jonathon Brill, James Styles

Tel: +44 (0)20 7664 5095

Email: Hostmore@dentonsglobaladvisors.com
(mailto:Hostmore@dentonsglobaladvisors.com)

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